AbbVie Inc (ABBV)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 8,464,000 | 15,698,000 | 15,405,000 | 5,846,000 | 10,210,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,360,000 | 17,254,000 | 15,408,000 | 13,076,000 | -8,172,000 |
| Return on total capital | 81.70% | 90.98% | 99.98% | 44.71% | — |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $8,464,000K ÷ ($—K + $10,360,000K)
= 81.70%
The return on total capital for Abbvie Inc has shown fluctuation over the past five years. The ratio stood at 21.31% in 2019 before decreasing to 12.67% in 2020. However, there was a significant improvement in 2021 with a return of 20.98%, followed by a further increase to 23.43% in 2022. In 2023, the return on total capital slightly declined to 19.15%.
Overall, the company's ability to generate returns from its total capital has been relatively strong, with peaks in 2022 and 2023. The fluctuations in the ratio may indicate changes in the company's capital structure, profitability, or efficiency in utilizing its capital resources over the years. Further analysis is needed to understand the factors driving these variations and their implications for Abbvie Inc's financial performance.
Peer comparison
Dec 31, 2023